From Loss-Making to Profitability
Profile
Industrial Products Manufacturer
Employees: 140
Turnover: £14m
Locations: North East, UK and Bangalore, India
The Business Challenge
The business was loss making and had insufficient market share. Ambition was high to launch new products, but the business lacked a market driven approach in its product development strategy. Having initial designs for two new product families, insufficient engineering capabilities and supporting organisational skills stifled the ability to bring these products to market.
Kelly Jones, Turnaround & Transformation Director Kelly’s Bio
How We Helped
Kingsgate’s Head of Private Sector was CEO in a business that designs and manufactures industrial products. Supplying products and aftermarket services for Marine, Industrial, Construction, and Mining.
Implementing an aggressive improvement strategy in such a chaotic, unstable environment relied on diagnosing root causes of the operational symptoms and identifying critical factors to maintain a healthy balance of stability and progress.
Increased the business’s knowledge of potential markets, supporting all areas of organisation to become more market led in day-to-day activities.
Instigated direct, two-way communication with all employees, including shop floor operators to address critical communication and motivation issues.
Led the expansion of capacity in India to provide both low cost sourcing and manufacturing capacity, delivering £600k annual product cost savings.
Results
Factory productivity increased by 15%, in addition to improved delivery performance reflected in reduced overdue orders from £400k to £10k.
On-time market release of two hydraulic motor product families including additional service lines
Established low cost manufacturing and sourcing capability
Provided a clear path to business profitability through product costs savings and overhead cost reductions to offset approximately £1m increased annual investment in product development costs and critical people skills.
“Kelly brought many fresh ideas and new thinking to these transformation programmes and demonstrated the dedication and perseverance required to overcome significant challenges. She provided leadership and direction for the company’s management team, ensuring these improvements can be sustained.”
